Lone Star Fund says it will purchase the remaining outstanding shares of Accredited Home Lenders Holding Co. by Thursday, resolving a dispute over the investment firm’s acquisition of the San Diego-based subprime lender.
Accredited sued Lone Star Fund Aug. 11 in an attempt to force Lone Star to complete its planned acquisition. Less than two weeks later, Accredited announced it was laying off more than 1,000 workers and closing down its retail lending business.
In a June 4 agreement, Lone Star was to buy Accredited for $15.10 per share, but attempted to back out of the deal when disruptions in the secondary market for mortgages jeopardized the company.
After being sued, Lone Star maintained Accredited had “little or no ability” to sell whole loan pools or to securitize loans, and was nearing default on $1.4 billion in credit facilities.
After Loan Star’s offer of $8.50 a share was rejected, the companies settled the lawsuit by agreeing to a price of $11.75 per share.
At the close of business Friday, Lone Star said it had bought nearly 24 million shares, or 95 percent of Accredited’s outstanding shares.